Assignment 2: Break-Even Point Formulas Before making hiring or purchasing decisions, health care...

Question

Assignment 2: Break-Even Point Formulas

Before making hiring or purchasing decisions, health care organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from an imaging center and calculate break-even points.

To prepare for this Assignment:

Review the Week 8 Assignment 2 document provided to you by the Instructor. Examine the imaging center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 ofFinancial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applicationsfor additional guidance.

The Assignment:

Given the imaging center scenario and financial data, complete the“Week 8 Assignment 2 Break Even Excel Template”.

tae_636674039465126184_119677_1.pdf tae_636674039465126184_119677_2.xlsx

Aarti J · Accepted Answer

Week 8 Assignment 2 Template
					Break-Even Point
										Part a.		Part b.		Part c.		Part d.
						Givens From Problem:	Costs			Dollars 	No.	Dollars 	No.	Dollars	No.	Dollars	No.
						A	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						B	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						C	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						D	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						E	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						F	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						G 	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						H 	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
						I	56,598.64			$56,598.64	217.69	$32,721.09	251.70	$65,794.39	299.07	$66,560.00	$   256
			A						B						C						D
	Reimbursement 						Reimbursement 				130		Reimbursement 						Reimbursement 				130
		Per Mammography (P)			$   260						$   260						$   220						$   260
	Fixed Costs				$   32,000		Fixed Costs				$   32,000		Fixed Costs				$   32,000		Fixed Costs				$   32,000
	Equipment lease				$   22,000		Equipment lease				$   22,000		Equipment lease				$   22,000		Equipment lease				$   22,000
	Equipment maintenance				$   10,000		Equipment maintenance				$   10,000		Equipment maintenance				$   10,000		Equipment maintenance				$   10,000
	Total Fixed Costs (TFC)				$   32,000		Total Fixed Costs (TFC)				$   32,000		Total Fixed Costs (TFC)				$   32,000		Total Fixed Costs (TFC)				$   32,000
	Variable Costs						Variable Costs						Variable Costs						Variable Costs
	Variables Costs based on Dollar Amount per Unit						Variables Costs based on Dollar Amount per Unit						Variables Costs based on Dollar Amount per Unit						Variables Costs based on Dollar Amount per Unit
	Technologist costs				$   68		Technologist costs				$   68		Technologist costs				$   68		Technologist costs				$   102
	Technologist aide				$   21		Technologist aide				$   21		Technologist aide				$   21		Technologist aide				$   21
	Variable cost				$   24		Variable cost				$   24		Variable cost				$   24		Variable cost				$   12
			Sum:		$   113				Sum:		$   113				Sum:		$   113				Sum:		$   135
	Break-Even Point						Break-Even Point						Break-Even Point						Break-Even Point
	Break-Even Units (X)		X = TFC / (P - V)				Break-Even Units (X)		X = TFC / (P - V)				Break-Even Units (X)		X = TFC / (P - V)				Break-Even Units (X)		X = TFC / (P - V)
	Targeted Profit						Targeted Profit						Targeted Profit						Targeted Profit
	Targeted Profit (TF)				$   - 0		Targeted Profit (TF)				$   5,000.00		Targeted Profit (TF)				$   - 0		Targeted Profit (TF)
	Units required to reach targeted TF, X = (TFC + TF) / (P-V)						Units required to reach targeted TF, X = (TFC + TF) / (P-V)						Units required to reach targeted TF, X = (TFC + TF) / (P-V)						Units required to reach targeted TF, X = (TFC + TF) / (P-V)

Assignment 2: Break-Even Point Formulas Before making hiring or purchasing decisions, health care organizations must consider whether the decision is financially profitable. By calculating break-even...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment